Gold (XAUUSD) Rebounds from $4,400 Support as Fed Policy and Geopolitics Drive Volatility

Gold (XAUUSD) price hit the strong support of $4,400 and rebounded sharply by creating long tail candle on the daily chart. The move followed heavy losses that rocked confidence across markets. Some investors used the dip to go back in. However, the recovery from the support level is still cautious.

The strong correction in the gold price was developed after President Trump appointed Kevin Warsh as the next Federal Reserve chair. Markets receive Warsh as more hawkish on policy, which indicates higher interest rates. The higher rates hurt the gold price as it does not pay interest.

On the other hand, the gold price was also under pressure due to tightening of trading rules. CME increased margin requirements on gold and silver (XAG). This forced the leveraged traders to cut positions quickly. The forced selling added weight in the short term. For now, geopolitics is a major risk for the market. Possible U.S.-Iran talks keep traders on guard. Any hint of rising tensions could bring gold back up again.

Daily Chart – Gold Rebounds from Key $4,400 Support

The daily chart for spot gold shows that the price has hit the strong support of the ascending broadening wedge pattern. This strong support is also aligned with the 50‑day SMA at around $4,400.

The price rebounded strongly by producing a long tail candle at this support area. This long tail candle indicates buying pressure and suggests the continuation of upside in the short term. However, a break below $4,400 will introduce further downside toward $4,200. The chart shows that the RSI has also stabilized at mid level which indicates that the price may rebound in the short term.

Another chart for spot gold shows that the strong rally toward $5,600 was an overextension of long-term bullish trend, which was initiated in 2023. However, the recent correction toward the $4,400 level is the normalization of the trend within the ascending channel pattern. The short term resistance remains at $5,000, and a break above this level is required to push prices higher.

However, a break below $4,400 will continue to drop the prices toward $4,000 and $3,800. However, this correction will be considered a strong buying opportunity for the next surge in gold price.

4-Hour Chart – Gold Holds Above Rising Trend Line

The above explanation shows that the price has found strong support at the
ascending broadening wedge. This support level is also highlighted on the 4‑hour chart by the rising trend line, which shows the $4,400 level as an important area. The price has rebounded from the support level, which indicates buying pressure in the short term. However, a break below $4,400 will introduce further downside.

Conclusion

Gold is trapped between policy pressure and geopolitical risk. The price rebounded strongly off support at $4,400, but the move came off a sharp sell-off on the news of Fed leadership and tighter margin rules. From technical perspective, the short-term outlook indicates buying interest, but larger picture is looking at whether the price will break above $5,000 or below $4,400.

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